Showing posts with label TMobile. Show all posts
Showing posts with label TMobile. Show all posts

Thursday, February 7, 2019

T-Mobile US sees revenue grow 6% in 2019

T-Mobile US reported Q4 2018 serve revenues of $8.2 billion, up 6% in Q4 2018. Annual revenue was also up 6% to $32.0 billion.  Diluted earnings per share amounted to $0.75 and $3.36 in Q4 2018 and 2018, respectively.

“This never gets old! T-Mobile finished another year with record-breaking financials and our best-ever customer growth! Record revenues, strong net income, record Adjusted EBITDA, our lowest-ever Q4 postpaid phone churn that was better than AT&T for the very first time!” said John Legere, CEO of T-Mobile.

On the earnings conference call, T-Mobile execs said there a big revenue aspirations for 5G but not through price increases compared its 4G smartphone service. T-Mobile expects to use its coming 5G network to build a broadband business, expand IoT capabilities, and to pursue enterprise opportunities. Some highlights:

  • Record 2.4 million total net additions in Q4 2018 — 7.0 million in 2018
  • 1.4 million branded postpaid net additions in Q4 2018, best in the industry — 4.5 million in 2018
  • 1.0 million branded postpaid phone net additions in Q4 2018, best in industry — 3.1 million in 2018
  • 135,000 branded prepaid net additions in Q4 2018, expect to be best in the industry — 460,000 in 2018
  • Q4 record-low branded postpaid phone churn of 0.99% in Q4 2018, down 19 bps YoY — 1.01% in 2018, down 17 bps from 2017
  • Branded postpaid phone Average Revenue per User (ARPU) remained generally stable in Q4 2018 at $46.29, down 0.2%.
  • T-Mobile is building out standards-based 5G in six of the Top 10 markets, including New York and Los Angeles. The network will be ready for the introduction of the first standards-based 5G smartphones in 2019. The carrier anticipates the delivery of a nationwide standards-based 5G network next year.
  • At the end of Q4 2018, T-Mobile owned a nationwide average of 31 MHz of 600 MHz low band spectrum. 
  • As of December 31, 2018, T-Mobile had cleared approximately 135 million POPs and the company expects to clear spectrum covering approximately 272 million POPs by year-end 2019. 
  • T-Mobile now covers more than 325 million people with 4G LTE, up from 322 million at the end of 2017. 

Wednesday, January 9, 2019

T-Mobile US posts best Q4 -- total net additions of 2.4 Million

T-Mobile US reported the following preliminary customer results.

Preliminary Fourth Quarter 2018 Customer Highlights:

  • 2.4 million total net additions - best quarter ever
  • 1.4 million branded postpaid net additions - best Q4 ever
  • 1.0 million branded postpaid phone net additions - best Q4 in 4 years
  • Lowest ever Q4 branded postpaid phone churn of 0.99%, down 19 basis points year-over-year
  • 135,000 branded prepaid net additions
  • 79.7 million customers in total at year-end 2018

Preliminary Full-Year 2018 Customer Highlights:

  • 7.0 million total net additions - accelerated year-over-year
  • 4.5 million branded postpaid net additions - best in 3 years
  • 3.1 million branded postpaid phone net additions - accelerated year-over-year
  • 460,000 branded prepaid net additions

“The T-Mobile team delivered our best customer results ever in Q4 2018 and we did it in a competitive climate while working hard to complete our merger with Sprint,” said John Legere, CEO of T-Mobile. “That's 23 quarters in a row where more than 1 million customers have chosen T-Mobile - along with a postpaid phone churn result that's below 1%. These customer results speak volumes about our company, our network and our brand!"

Wednesday, September 12, 2018

T-Mobile to deploy small cells on Crown Castle properties

T-Mobile and Crown Castle are extending their long-term, strategic relationship to cover the deployment of additional small cells within their existing footprint and light up small cells in new markets.

T-Mobile will use the small cells to enhance 4G LTE network capacity and prepare for 5G deployments.

“This agreement expands our long-term partnership with Crown Castle,” said Neville Ray, Chief Technology Officer for T-Mobile. “By installing additional small cell locations, our customers will have an improved wireless experience with LTE and as we migrate to 5G.”

“Our expanded agreement with T-Mobile strengthens our longstanding relationship and provides a variety of economic benefits to local governments, businesses, and consumers in new and existing markets,” said Jay Brown, Chief Executive Officer, Crown Castle. “We look forward to continuing to support T-Mobile’s growth by investing in infrastructure assets to meet their network needs for years to come.”

Tuesday, September 11, 2018

T-Mobile awards $3.5 billion 5G contract to Ericsson

T-Mobile awarded a multi-year, $3.5 billion contract to Ericsson to support its nationwide 5G network deployment.

Ericsson will supply T-Mobile with its latest 5G New Radio (NR) hardware and software compliant with 3GPP standards. Ericsson will also supply digital services solutions, including dynamic orchestration, business support systems (BSS) and its Ericsson Cloud Core.

"While the other guys just make promises, we're putting our money where our mouth is. With this new Ericsson agreement we’re laying the groundwork for 5G and with Sprint – and with Sprint we can supercharge the 5G revolution," stated Neville Ray, Chief Technology Officer, T-Mobile

"We have recently decided to increase our investments in the US to be closer to our leading customers and better support them with their accelerated 5G deployments; thereby bringing 5G to life for consumers and enterprises across the country. This agreement marks a major milestone for both companies. We are excited about our partnership with T-Mobile, supporting them to strengthen, expand and speed up the deployment of their nationwide 5G network," said Niklas Heuveldop, President and Head of Ericsson North America.

Nokia lands $3.5 billion, multi-year 5G deal with T-Mobile

T-Mobile US awarded a $3.5 billion contract to Nokia for the deployment of its nationwide 5G network.

Specifically, Nokia will help build T-Mobile's nationwide 5G network with 600 MHz and 28 GHz millimeter wave 5G capabilities compliant with 3GPP 5G New Radio (NR) standards. The agreement covers Nokia's end-to-end 5G technology, software and services portfolio. This includes Nokia's AirScale radio platforms and cloud-native core, AirFrame hardware, CloudBand software, SON and 5G Acceleration Services.

"We are all in on 5G," said Neville Ray, Chief Technology Officer at T-Mobile. "Every dollar we spend is a 5G dollar, and our agreement with Nokia underscores the kind of investment we're making to bring customers a mobile, nationwide 5G network. And together with Sprint, we'll be able to do So. Much. More."

"Nokia and T-Mobile will advance the large-scale deployment of 5G services throughout the United States," said Ashish Chowdhary, Chief Customer Operations Officer, Nokia. "This is a testament to our companies' strong and productive working relationship, one which has produced several important technological milestones in recent months, and which now allows us to make 5G a commercial reality."

Regarding its financial outlook, Nokia said the AirScale radio platforms and cloud-native core, AirFrame hardware, CloudBand software, SON and 5G Acceleration Services in this contract were included in the guidance issued in the Nokia Financial Report for Q2 and Half Year 2018 as stated on July 26, 2018.

IEEE 5G World Forum: T-Mobile says 5G is AWESOME

"5G is AWESOME" -- that's the message delivered emphatically by Egil Gronstad, Senior Director of Technology Development and Strategy for T-Mobile USA, speaking to a mostly academic audience at the 2018 IEEE 1st 5G World Forum (5GWF’18) in Santa Clara, California this week. 

The main takeaway from his half-hour presentation: 5G is happening now at T-Mobile USA. The rollout is real and is proceeding if for no other reason than higher performance, which is always desirable in networking.

Some key takeaways:

  • T-Mobile's 5G commercial rollout begins this year in 30 cities and will be fully nationwide within 2.5 years. T-Mobile will deploy its 5G RAN using both 600MHz and 28GHz millimeter wave spectrum. Previously, Nokia confirmed that its equipment has been selected for the initial rollout.
  • A key learning is that 5G requires mid-band spectrum and T-Mobile's newly licensed 600 MHz spectrum is a strategic advantage
  • Building penetration loss for 5G in mmWave spectrum is significant
  • T-Mobile is not expecting to charge more for 5G service compared to its existing plans. The company expects to attract new customers and applications as the cost justification for upgrading to 5G
  • Voice needs to ride on the 5G network as soon as possible. In the transition to 4G, it was a mistake for voice to continue on the 3G for so long.
  • T-Mobile USA has no current plans for 5G fixed wireless service but is looking very closely at the business case.
  • T-Mobile USA has added one million or more users each quarter for the past 20 quarters

Wednesday, August 1, 2018

T-Mobile US reveunues rise 4% to $10.6 billion

T-Mobile U.S. said its Q2 total revenues rose 4% to $10.6 billion -- service revenues were up 7% to $7.9 billion, leading the industry for growth the 17th consecutive quarter.  Net income was up 35% to $782 million and diluted earnings per share (EPS) came in at $0.92.

“T-Mobile just recorded its best Q2 in company history,” said John Legere, CEO of T-Mobile. “That means 21 quarters with over one million net adds, record-high service revenues, industry-leading postpaid phone net additions, and record-low postpaid phone churn. Our business is strong, our strategy is working and we won’t stop!”

Some highlights:

  • Total net customer additions were 1.6 million in Q2 2018, bringing the total customer count to 75.6 million. 
  • Branded postpaid net customer additions were 1.0 million in Q2 2018, up 200,000 from Q2 2017. Strength in postpaid phone net additions and postpaid other net additions, driven by wearables, drove the year-over-year increase.
  • Branded postpaid phone net customer additions were 686,000 in Q2 2018, up 153,000 from Q2 2017. This marks the 18th consecutive quarter in which T-Mobile has led the industry in this category. Sequentially and year-over-year, branded postpaid phone net customer additions increased due to continued growth in existing and Greenfield markets, the growing success of new customer segments such as T-Mobile for Business, T-Mobile ONE Unlimited 55+, and T-Mobile ONE Military, as well as record-low churn.
  • Branded postpaid other net customer additions were 331,000 in Q2 2018, up 47,000 from Q2 2017. Year-over-year the increase was due to higher gross customer additions from connected devices, specifically the Apple watch, partially offset by lower DIGITS gross customer additions and higher deactivations from a growing customer base.
  • Branded postpaid phone churn was a record-low of 0.95% in Q2 2018, down 15 basis points from Q2 2017, primarily due to increased customer satisfaction and loyalty from ongoing improvements to network quality, industry-leading customer service and the overall value of our offerings in the marketplace.
  • Branded prepaid net customer additions were 91,000 in Q2 2018, down 3,000 from Q2 2017.
  • Branded prepaid churn was 3.81% in Q2 2018, down 10 basis points compared to Q2 2017.

Friday, July 20, 2018

T-Mobile discusses its Connect IoT program with Ovum's Mike Sapien

 A discussion of T-Mobile's CONNECT IoT Program, featuring Ovum's Mike Sapien, T-Mobile's Shelby Noakes and Lawrence Garcia.

T-Mobile US launches nationwide NB-IoT

T-Mobile launched its Narrowband Internet of Things (NB-IoT) service across the United States -- the first carrier to do so.

NB-IoT operates on spectrum guard bands, which T-Mobile describes as the network equivalent of driving down the shoulders on the highway. It is a low power, wide area network (LPWAN) LTE-Advanced technology boasting low power usage, long battery life and low device cost. T-Mobile was also first to trial NB-IoT in the U.S. last year.

Significantly, T-Mobile’s NB-IoT plan costs just $6 a year – one tenth of Verizon’s Cat-M plans – for up to 12 MB per connected device. Several NB-IoT modules based on Qualcomm MDM9206 LTE IoT modem are certified for use on T-Mobile’s network.

T-Mobile worked with Ericsson, Nokia and Qualcomm Technologies to deploy nationwide NB-IoT.

T-mobile also announced its new partner program, T-Mobile CONNECT, to help IoT solution providers collaborate and bring their products and services to market on T-Mobile’s network -- and into the hands of customers -- more quickly.

“We’re always innovating to bring customers the latest technology, and NB-IoT is the globally-preferred standard to power the rapidly expanding world of IoT applications,” said Neville Ray, Chief Technology Officer at T-Mobile. “So of course, T-Mobile is the first to bring NB-IoT to the U.S., lighting up new capabilities to connect massive numbers of devices at low cost.”

For applications that require more bandwidth and voice, T-Mobile also offers Cat-1 IoT Access Packs. In addition, the new T-Mobile CONNECT program will help IoT solution providers accelerate the development and commercialization of their products and solutions.

T-Mobile US to deploy Nokia 5G in 600MHz and 28GHz mmWave this year

T-Mobile U.S. announced plans to build out 5G in 30 cities this year and Nokia confirmed that its equipment has been selected for the rollout. T-Mobile will deploy its 5G RAN using both 600MHz and 28GHz millimeter wave spectrum.

Nokia will begin building the network during the second quarter of 2018, completing the deployment during 2020. Financial terms were not disclosed.

T-Mobile said New York, Los Angeles, Dallas and Las Vegas will be first to get 5G. Service, of course, will require a 5G smartphone and these are expected to launch early in 2019.

Nokia listed the following elements in T-Mobile's deployment:

  • Nokia AirScale baseband and remote radio heads supporting 5G NR, and ReefShark-enabled portfolio in the 600MHz and 28GHz mmWave spectrums. The Nokia 5G-ready AirScale radio access portfolio, which is software upgradable to full 5G services will provide enhanced RAN support for 4G and 5G T-Mobile subscribers
  • Nokia installed Core technologies will be enhanced to support 5G, implementing a cloud-native architecture, powered by the Nokia AirFrame data center solution, Subscriber Data Management, CloudBand and Cloud Packet Core
  • Nokia Mobile Anyhaul framework to enable ultra-broadband connectivity
  • Nokia Digital Experience and Monetization solutions will support 5G device management and Narrowband IoT (NB-IoT) solutions
  • Nokia CloudBand Management and Orchestration (MANO) software suite will automate cloud application deployment and lifecycle management
  • Nokia NetAct virtualized network management software provides capabilities for troubleshooting, assurance, administration, software management and configuration, and managing the smooth evolution to 5G
  • Nokia Global Services expertise, including automation to speed the rollout and analytics to help optimize network performance

Friday, January 13, 2017

Commentary: No one quite knows what to do with T-Mobile

Preamble - Malone suggests a new role for T-Mobile USA 

On January 10th, speaking at a Lions Gate Entertainment investor event, John Malone, who owns majorities in Liberty Media, Liberty Global and Liberty Interactive, plus 49% of Starz (since June 2016 a major subsidiary of the Lionsgate Group), 29% of Discovery Communications, and via Liberty Broadband is the largest share holder in Charter Communications, suggested that under a more liberalminded Trump presidency the three top U.S. cable cos - Comcast, Charter Communications and Cox Communications - could combine to acquire Deutsche Telekom's high-performing U.S. mobile subsidiary T-Mobile USA (TMUS) to create a substantial cable and wireless corporation. 

The Malone idea has some merit given the rapid increases in scale and convergence, particularly by AT&T, which in late July 2015 became a major TV player in the Americas via its $49 billion acquisition of DirecTV, and is also hoping to become a major content provider via a possible $85.4 billion acquisition of Time Warner (although that initiative yet to be approved by the company's shareholders, the FCC and DoJ, and has been publicly criticised by Donald Trump, which implies the proposal in its present form may not have a high chance of acceptance).

However, the Malone suggestion also has a slightly bizarre quality about it given that according to a recent analysis by 24/7 Wall Street, Comcast is the No. 1 most hated company in the U.S., while Charter is at No. 12, whereas judging by the steady flow of mobile customers eager to sign up with T-Mobile each quarter, it must be one of the most popular consumer-oriented institutions in the country. 

While allowing for a degree of media hyperbole in the characterisation of Comcast and Charter and the attractions of building a strong third communications pole with a full services capability able to take on AT&T and Verizon at any level, the operational chemistry for such a deal does not seem good, particularly when taking into account the unusual character of John Legere, CEO of TMUS and the obvious architect of its current success. 

T-Mobile Q3 2016 results very strong 

To get some idea as to why Malone's suggestion seems a little far fetched one needs to look at the remarkable TMUS results for Q3 2016, announced October 24th, when it reported: 

• 2.0 million net mobile additions, the company's 14th consecutive quarter it had signed up at least a million new subscriptions, implying significant gains in market share against two of the world's largest and most successful communications operators, AT&T and Verizon. 
• It ended the quarter with 69.4 million customers. 
• 1.32% branded post paid churn. • Service revenue of $7.1 billion, up 13.2% year on year, making it the industry leader in growth for the 10th consecutive quarter. 
• Total revenue of $9.2 billion, up 17.8% year on year, making it the industry leader in growth for the 13th time in the past 14 quarters. 
• Adjusted EBITDA of $2.6 billion, up 37.8% year on year. • Net income of $366 million, up 165% year on year. 
• 4G LTE coverage of 312 million pops, almost identical to that of Verizon. 

During the Q3 teleconference on the results, Legere said: - 'Don't forget, our network is still the fastest in America, It has been the fastest in both download and upload for 11 quarters in a row, upload speeds are becoming increasingly important with the rise of social sharing, and upload speeds are almost 50% faster than Verizon, the closest competitor'. 

(NB: as of the close January 12th T-Mobile US was valued at $57.15 per share, or $47.1 billion, and over the last 52 weeks the company's stock price has moved between a low of $33.23 and a recent high of $59.46.) 

Deutsche Telekom's position 

A few years ago Deutsche Telekom seemed quite keen to dispose of TMUS, and in May 2014 an offer from Sprint's new owner Softbank of Japan was accepted in principle, but collapsed in August 2014 following opposition from U.S. regulators, who were insistent on keeping four wireless competitors in the market. Softbank owner Masayoshi Son in late 2016 made it clear he still hoped to cut a deal.

As T-Mobile has got larger and more profitable the attitude of Deutsche Telekom, which owns 65% of the company, has subtly changed and the parent has become more helpful in providing lines of credit to help its expansion. Notably, in mid November 2016 Deutsche Telekom CEO Tim Hoettges, speaking at the Morgan Stanley annual TMT Conference, was quoted as saying that it was not 'in the mood' for selling the business and was in the mood of 'where is the partner we need'. With TMUS approaching the size of its German parent and still growing fast, it is beginning to look like Deutsche Telekom's greatest opportunity for growth. 

John Legere's position 

The TMUS CEO, who frequently dresses like a yester year pop star in leather and jeans, is obviously on a high and in such circumstances may be excused some of his more outlandish statements, including liberal non family-friendly cursing and the baiting of his two main rivals (for example 'either those bastards change or we take over the industry'), who often rise ponderously to the bait. Nevertheless, whatever his personal peculiarities there seems little doubt that he is a genuinely effective and transformative manager rather than the lucky inheritor of a favourable business trend. 

In late 2012, Legere took over a company that was bleeding subscribers and whose revenue growth was declining. Since then, he has dramatically reversed those trends through a number of well designed sales packages and through re-motivation of the company's staff and his company now has genuine momentum. Since he took over T-Mobile the customer base has doubled and in early August 2015 T-Mobile announced that it had moved past Sprint to become the country's third largest operator in terms of subscriptions. 

In January 2014, TMUS announced that it was moving into mobile banking via a deal with Bancorp and Blackhawk Network Holdings. Whilst not particularly advanced the solution offered basic banking services: a prepaid Visa card; a mobile app customers could use to deposit checks, pay bills, transfer funds and reload cards; and access to AllPoint’s partner network of 42,000 ATMs to withdraw cash. Moreover, though behind Sprint, Legere appeared to be well ahead of the two larger rivals. The opportunity was not negligible and at the time it was said that the unbanked in the U.S. numbered about 68 million, or around 20% of the population. 

On August 18, 2016, Legere announced his boldest move yet, with a genuinely unlimited data plan called TMobile ONE priced at $70 a month for the first subscription in a family, $50 a month for the second subscription, with additional lines only $20 a month and up to 8 lines with auto pay. The only qualification was that the very heaviest users might find their applications given lower priority at times of congestion. 


Brilliant as its performance is in the short and even medium term, there is a core problem for T-Mobile, highlighted by the Malone suggestion, which is convergence. Legere seems to think that given enough capacity and intelligence the mobile can fulfil all of a user's digital needs and given his energy and creativity he can probably grow the company for another five years. Fibre, at least in the U.S., is on average much further behind wireless in than in many other developed countries, so that position may be plausible. However, that still leaves the question of content and large operators across the world seem to feel the need to increasingly control directly a good proportion of the content they transmit. Maybe, given his drive and creativity, Legere can come up with a solution to that problem as well. 

See also